rope a dope

Crude Oil Trading June 23rd 2015

Tuesday: June 23rd, 2015

Crude Oil Trading

IMPORTANT NOTE AT BOTTOM OF POST

CLPORT Method: Trade Hit 1P Profit Target on trade today. Then decided to retrace and take out the entry point. But the trading method was profitable today according to trading rules of 1P take your profits.

Trade #1: Long at 6005. 1P Profit Target was Hit at 6024 before retracement on the trade.

Trade #2: HVS 700 Bracket appeared on charts so I was looking in both directions of the trade … I reversed my position from a long bias to a short bias at 5995 this morning.

Short at 5995 Time of trade was 8:20AM CST. Profit Target on Trade is 5P from Open of 6021 … This makes my overall profit target 5927 on trading today.

Crude Oil Trading … Short made it to 1P on the trade this morning located at 5976.

Well, what I know about trading is the market is ALWAYS right … all you can do is take your position based on the best of your trading knowledge and then using this knowledge be smart in your trading decisions. As I see the market right now, I am looking for the market to head down towards S1 on the trading charts all things being equal.

With that being said I have protected this trade at breakeven now … in case of failure … or in this case … my trading bias is incorrect.

I was taken out of my short trade and I saw a lot of grinding on the short … it looked like a market ready to pop …

Trade #5: Long at 5991. Filled at 9:13AM CST.

This is a tough setup to see … in my humble opinion … this kind of trade comes from experience. What I saw was a failure of the #1 HVS Trend 1000 to complete the downtrend after it formed. We formed a base of higher lows on the way up … we had already traded through the Pivot Point on the CL Open Outcry so I wasn’t worried about the pivot point …

IN fact, I was looking for the market to POP UP … and it did exactly what I believed it would do looking at the chart formations and associated Volume on the morning session.

Here is what I know about trading … my style of trading the Crude Oil Market is much like Cassius Clay (ALI) and the way he used to ROPE a DOPE a person. You have to be flexible and nimble and able to move with the movement and flow of the market. Years ago, Joe Ross said something to me that took a while for it to sink in …

He said, “YOU MUST BECOME THE REMORA, DAVID.”

The Remora is a Pilot Fish that feeds on the crumbs of the shark. The shark does not eat it … normally … but the Remora does not place itself in harm’s way, but swims with the shark and not against it.

Profits were on the table and I took them after the market retraced after touching R1 on the trading day … it was a fast movement.

If I would have had a trailer … then I could have followed the trade a little longer looking for at least 5P to 7P or more on the trade.

The market continued to move on up to 5P on the trading session after a retest of R1 … the hard part of the trade is to get into position. This was from my experience knowing that the market was struggling to go down … so in my head … I say … If I can’t beat them … then join them!

This is what I tell myself as I place the reversing trade at a place where I believe the market will explode up …

Up to this point in time after my initial long … this was my only other long … I was short up to this point in time … this is the point in time on the charts where I covered at went with the market longs … be the Remora is illustrated here and go with the SHARKS!

I was down 23 ticks before turning it around on this trade where I exited the trade at 6067 at 9:21AM CST.

Enjoy!!

Here is the total long trade … a little over 8 minutes in the trade … these are the fun ones!

 

Kind Regards, Good Trading and God Bless,

David M. Knight
TradeCraze

IMPORTANT NOTE:
P.S. I had an excellent question sent to me on YouTube and I want to take a minute to answer it here in my post script. For those that are following me (new) then I want you to know I am a sporadic trader from Mid June through July to roughly Mid August. And also from Mid December to Early January.

Yes, I take time off to recharge and spend time with the family … etc. The last few years Baseball has been the focus during this time. I have been fortunate to be a stay at home Dad and watch my boys play ball. They are both ALL-STARs again!

My oldest is 12 representing West Point Little League and my youngest is 9 and playing in his 9U Tournament team. They have morning, afternoon, and evening practices and games during this time period.

With that being said, it is important for me to pass the TST Combine as well … I am as of today 4 trading days in with 6 more to go to qualify on the trading day requirement. I am right where I want to be …

This week … I am planning on trading Wednesday and Thursday. I will not trade next week until after the 4th of July. Right now as I am looking at the calendar it will be July 7th …

So here is how it will shape up right now. I will be trading on June 24th and 25th, then not until July 7th. My oldest boy if they make it out of Districts will still be close playing at Mt. Pleasant Little League for Sectionals. But my youngest has tournaments I want to see. The month of July … historically … I have taken completely off in my trading for a long time.

Why I didn’t trade until today? The contract rolled on Thursday of last week, or June 18th, and gave me an opportunity to have a long 5 day weekend.

Be careful trading in the month of July overall, I have seen volume really dry up and makes it really tough to make money and more grinding kind of days like today before it broke out.

Sometimes, I forget to let people know what I am doing … and this can cause some stress. For this I am sorry … this blog is exactly that a collection of my trading thoughts, experiences and my own personal journey as a trader.

Yes, the Good, the Bad and unfortunately the UGLY as well!!

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.